Amazon Invests $1 Billion to Boost Pay and Cut Healthcare Costs for U.S. Workers
Amazon announced on Wednesday that it will invest more than $1 billion to improve compensation and reduce healthcare expenses for its U.S. fulfillment and transportation employees. With this move, the company aims to raise the average total compensation to over $30 an hour, including benefits.
The retail and technology giant confirmed that average wages will increase to more than $23 per hour. For full-time employees, this means an average annual pay raise of about $1,600.
Starting in 2026, Amazon will also lower the cost of its entry-level healthcare plan. Employees will pay just $5 per week in contributions and $5 for co-pays, representing a 34% drop in weekly costs.
As of the end of last year, Amazon employed over 1.5 million full-time and part-time staff. The company also brings in seasonal workers and contractors during peak shopping periods such as the holidays.
However, Amazon has faced labor disputes in recent years. During last year’s holiday season, workers at seven U.S. facilities staged walkouts, demanding better conditions and fairer treatment. Union leaders accused the company of refusing to negotiate contracts.
In December, Amazon reached a settlement with federal regulators to implement safety measures across all U.S. facilities. The agreement followed claims that the company had not done enough to prevent workplace injuries such as back problems and ergonomic issues.
